Players Union Alleges MLB Collusion Against Free Agents

The Major League Baseball Players Association (MLBPA) is alleging that during the baseball winter General Managers' meetings, the GM's may have violated baseballs basic agreement - the collective bargaining agreement (CBA) between Major League Baseball (MLB) and the MLBPA - by sharing information, including amounts of money set aside for individual free agents. MLB's executive vice-president of labor relations and human resources, Robert Manfred, contends that no information about players was shared and that what occurred was a basic discussion of "needs" and "goals" of the clubs comprising baseball's major leagues. These discussions were reportedly around positions, not players, although several teams did apparently mention specific players they may be interested in dealing.

Of specific interest to the union is one specific free agent - Alex Rodriguez - who opted out of the remaining years of his $252 Million contract with the Yankees, of which $72 Million remained, to seek free agency. During the course of the winter meetings, several teams have publicly downplayed or denied interest in signing Rodriguez and the union contends this information sharing has changed the market for this player. For it's part, the union did not specifically name Rodriguez, instead referring only to "at least one player," but did state their concern about the Commissioner attempting to influence the potential market which would be collusion.

During the 1980's, in the aftermath of the 1975 arbitration award granting players free agency and subsequent strike, the players' association filed three grievances against MLB around collusion to suppress free agent salaries. These grievances are commonly referred to as "Collusion I," "Collusion II," and "Collusion III."

Collusion I & II were grievances around club owners working together not only to hold down player salaries, but also to hold down the length and terms of contracts, under the direction of Commissioner Peter Ubberoth who continually urged fiscal responsibility to the owners. During 1985 and 1986, eight total players switched teams (four each year) and average salaries decreased. In September 1987, arbiter awards in the Collusion cases started to come in, at which point the clubs set up an "information bank" on offers to free agents, which led to the third collusion case, III.

The grievances were settled in November, 1990 with the owners agreeing to pay $280 to the MLBPA.

Collusion charges have emerged in later years - specifically in 2003 when free agent signings and salaries were in the midst of a "market correction," the MLBPA alleged that MLB had conspired to increase the availability of free agents to drive down the price by inflating the supply with shorter term contracts.

Addressing the issue of Free Agency and collusion, Article XX, Section E, Paragraph 1 of the Basic Agreement, discusses free agency as individual in nature and as "solely by each Player and each Club for his or its own benefit" and states "Players shall not act in concert with other Players and Clubs shall not act in concert with other Clubs." Attachment 13 of the current CBA is a letter from Mr. Manfred to Donald Fehr, the MLBPA Executive Director, memorializing the understanding that the teams would not operate an "information bank" with respect to free agents.

SOURCES

Canadian Press, "Union concerned Selig may be trying to hold down A-Rod price," URL: http://canadianpress.google.com/
article/ALeqM5hBH7dvyg5pA7ptwPIqBb7PqI7CXQ

MLB.com, "Union concerned with info sharing," URL: http://mlb.mlb.com/news/article.jsp?ymd
=20071108&content_id=2296642&vkey=hotstove2007&fext=.jsp

Newsday, "Union is alleging collusion," URL: http://www.newsday.com/sports/
baseball/ny-spcoll095453042nov09,0,4013860.story

MLB/MLBPA Basic Agreement, URL: http://mlbplayers.mlb.com/pa/info/cba.jsp

Wikipedia, "Baseball Collusion," URL: http://en.wikipedia.org/wiki/Baseball_collusion